Blackstone-backed Private Equity firm eyeing Hong Kong IPO delay

According to people familiar with the matter, Bloomberg PAG, an Asia-focused private equity firm backed by Blackstone Inc., is considering a delay of its initial public offering in Hong Kong.

The firm, headed by Chinese dealmaker Weijian Shan, is likely to make its debut in 2023, according to the people, who asked not to be identified because the matter is private. The people said that PAG is keen to avoid the sale because of stock market volatility, which could lead to investors demanding steep discounts and seeing weak trading in the first days after listing.

If markets were to improve in the short term, considerations are ongoing and a listing could happen soon, the people said. Representatives for PAG didn't respond immediately to requests for comment by phone and email.

PAG applied for an IPO in Hong Kong in March and was poised to be one of the financial hub's biggest listings in a year that has seen a drought of major share sales. The data from Bloomberg shows that companies raised $5 billion this year from Hong Kong IPOs, a fraction of the $35 billion raised in 2021.

The firm s offering could raise as much as $2 billion, according to Bloomberg News. People familiar with the matter said that PAG is considering seeking a market value of between $10 billion and $15 billion.

PAG is one of Asia's largest alternative asset managers with $50 billion under management as of March 15, according to its website. Private equity, private debt, distressed, real estate and absolute return funds are some of the strategies that the firm runs. It had around 293 investment professionals in 12 offices in the world at the end of last year. In 2018, it agreed to sell a minority stake to Blackstone's Strategic Capital Holdings Fund.

According to an exchange filing, Goldman Sachs Group Inc. and Morgan Stanley are jointly sponsors of PAG's planned share sale, while UBS Group AG is acting as financial adviser.